Rapid Bettendorf growth, state tax laws bring budget challenges

Balancing sound fiscal policies with rapid growth and the desires of residents to maintain a high level of city services are all a part of what the Bettendorf City Council and staff are facing as they put together a budget for the next fiscal year. Bettendorf Mayor Bob Gallagher presented a picture of residential and […]

Balancing sound fiscal policies with rapid growth and the desires of residents to maintain a high level of city services are all a part of what the Bettendorf City Council and staff are facing as they put together a budget for the next fiscal year. Bettendorf Mayor Bob Gallagher presented a picture of residential and commercial growth tempered with challenges coming from state property tax policy and the need to increase public safety services in his annual State of the City address on Wednesday, Feb. 21, at the Quad-Cities Waterfront Convention Center.

He prefaced his remarks to the audience of just over 200 with high praise for city staff. “I get the opportunity to stand before you and thank those people who do the hard work for the City of Bettendorf and explain to you what’s happened in 2023 and what we can look forward to in 2024,” said Mr. Gallagher, who has been mayor since 2012. From an extensive PowerPoint presentation, the mayor noted his favorite slide. It showed Bettendorf had the lowest cost of operating levy and fees for a residence valued at $319,000 (Bettendorf’s mean home value) among all 21 Iowa cities with populations of 24,000 or more. Bettendorf’s number was just under $2,000 compared with cities on the high end, like Ottumwa and Waterloo, at around $3,500.

Doing more with less

This represents the area that funds city employees and their interactions with the public, and basic services such as garbage and recycling pickup. “We are the leanest operating budget in the State of Iowa,” he said. “We do more with less than anybody, and I’m very proud of that.”

Mr. Gallagher noted the city is not immune from rising costs. Twenty years ago, the city purchased an aerial fire truck for $600,000. Just recently, he said, the city ordered a new one at a cost of $2 million. “And we won’t see that truck for three years,” he said. Information shown Wednesday indicates that over the past 10 years, state property tax policy has reduced taxable value as a percentage of assessed value from 62% to 51%. For Bettendorf, the change from FY24 to FY25 reduced taxable value by $393 million. That means $3 million in potential property tax revenue for the general fund. The city has heard from its citizens that they want more firefighters and want every firehouse fully staffed “and we’re going to do that,” he said. The city has hired six new firefighters and has plans to hire three more.

Public safety a priority

Residential growth and an increase in visitors to the community brought about by the TBK Sports Complex and its accompanying commercial development will bring about a consistent need for more public safety services, Mr. Gallagher said. In 2023, there were more than 32,000 police calls to the Bettendorf department. And the fire department responded to almost 5,000 incidents.

“We want everyone to feel safe in our community,” he said, noting the city also hired four new police officers and added a new K9 officer in 2023. According to Visit Quad Cities, the TBK Sports Complex attracted 1.38 million out-of-town visitors in a five-year span ending in December 2023. It also logged 6.3 million local visitors in that time, Mr. Gallagher said. He noted the city’s major work on its Middle Road gateway (“the largest public works project in Bettendorf history”). in addition proposed improvements are expected to come in several years to the Interstate 80-Middle Road interchange. Mr. Gallagher said sewers will be installed under I-80 to open the area north of there to future growth and development. He referenced other property north of I-80 that could ultimately be annexed by Bettendorf if city services are requested by future developers. Bettendorf’s population was just over 39,000 in 2020, and thanks to recent growth is projected to reach more than 56,000 by 2045.

Next up, West Bridge

But the growing north end isn’t the only area where plans are developing. The mayor said the city hopes to develop the Mississippi Riverfront as a destination for living and for entertainment. The area “we’re very excited about” is being called the West Bridge District, he said. This includes the area from Sixth Street on the west to the I-74 Urban Park underneath the new bridge on the east, Grant Street on the north and the river to the south. Developers are in discussion with city planners about potential projects, he said. Information on plans for Bettendorf’s downtown as well as the city’s comprehensive land use plan can be found on the city’s website here. Mr. Gallagher noted that the city dealt with two major unplanned events over the past year – flooding on the Mississippi River and the major snowfall in January, which he said was “The most snowfall this area ever had in one week.” City employees logged 11,840 lane miles of plowing and put down almost two tons of salt, he said.